Juda Recliners manufactures leather recliners and uses flexible budgeting and a standard cost system. Juda allocates overhead based on yards of direct materials. The company's performance report includes the following selected data: (Click the icon to view the selected data.) Read the requirements. Data table Sales (1,000 recliners x $510 each) (980 recliners x $475 each) Static Budget (1,000 recliners) Actual Results (980 recliners). 510,000 $ 465,500 Variable Manufacturing Costs: Direct Materials (6,000 yds. @$8.50/yd.) 51,000 (6,143 yds. @ $8.30/yd.) 50,987 Direct Labor (10,000 DLHr @ $10.90 / DLHr) 109,000 (9,600 DLHr @ $11.10/DLHr) 106,560 Variable Overhead (6,000 yds. @ $5.00 / yd.) 30,000 (6,143 yds. @ $6.40/yd.) 39,315 Fixed Manufacturing Costs: Fixed Overhead Total Cost of Goods Sold Gross Profit Print Done 60,000 62,000 250,000 258,862 260,000 $ 206,638 - X - X Requirements 1. Prepare a flexible budget based on the actual number of recliners sold. 2. Compute the cost variance and the efficiency variance for direct materials and for direct labor. For manufacturing overhead, compute the variable overhead cost, variable overhead efficiency, fixed overhead cost, and fixed overhead volume variances. Round to the nearest dollar. 3. 4. Have Juda's managers done a good job or a poor job controlling materials, labor, and overhead costs? Why? Describe how Juda's managers can benefit from the standard costing system. get amo Print Done Requirement 1. Prepare a flexible budget based on the actual number of recliners sold. (Round budget amounts per unit to the nearest cent.) Juda Recliners Flexible Budget Budget Amounts per Unit Actual Units (Recliners) Sales Revenue Variable Manufacturing Costs: Direct Materials Direct Labor Variable Overhead i Fixed Manufacturing Costs: Actual Units (Recliners) Sales Revenue Variable Manufacturing Costs: Direct Materials Direct Labor Variable Overhead Fixed Manufacturing Costs: Fixed Overhead Total Cost of Goods Sold Gross Profit Budget Amounts per Unit Requirement 2. Compute the cost variance and the efficiency vanance for direct ma compute the variable overhead cost, variable overhead efficiency, fixed overhead cost, and fixed overhead volume variances. Round to the nearest dollar. Begin with the cost variances. Select the required formulas, compute the cost variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Round your answers to the nearest whole dollar. Abbreviations used: AC = actual cost; AQ= actual quantity; FOH = fixed overhead; SC standard cost; SQ standard quantity.) Direct materials cost variance Formula Variance Direct labor cost variance Next compute the efficiency variances. Select the required formulas, compute the efficiency variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Round your answers to the nearest whole dollar. Abbreviations used: AC = actual cost; AQ actual quantity; FOH = fixed overhead; SC standard cost; SQ standard quantity.) Direct materials efficiency variance Direct labor efficiency variance Formula Variance Now compute the variable overhead cost and efficiency variances. Select the required formulas, compute the variable overhead cost and efficiency variances, and identify whether each variance is favorable (F) or unfavorable (U). (Round your answers to the nearest whole dollar. Abbreviations used: AC = actual cost; AQ = actual quantity; FOH fixed overhead; SC standard cost; SQ = standard quantity; VOH = variable overhead.) VOH cost variance VOH efficiency variance Formula Variance Now compute the fixed overhead cost and volume variances. Select the required formulas, compute the fixed overhead cost and volume variances, and identify whether each variance is favorable (F) or unfavorable (U). (Round your answers to the nearest whole dollar. Abbreviations used: AC actual cost; AQ actual quantity: FOH = fixed overhead; SC standard cost; SQ = standard quantity.) FOH cost variance Formula Variance FOH volume variance Requirement 3. Have Juda's managers done a good job or a poor job controlling materials, labor, and overhead costs? Why? Requirement 3. Have Juda's managers done a good job or a poor job controlling materials, labor, and overhead costs? Why? The variances computed in Requirement 2 suggest that the managers have done a direct materials cost variance and direct labor efficiency variance help offset the direct materials efficiency variance. Managers have done a of the overhead variances are job controlling materials and labor costs. The direct labor cost variance and job controlling overhead costs as evidenced by the fact that Requirement 4. Describe how Juda's managers can benefit from the standard costing system. Standard costing helps managers do the following